State Farm Auto Insurance Review

There are currently more than 1,500 State Farm employees across Canada and an additional 500 independent agents offering State Farm Insurance. The company is the second largest auto insurance seller in Ontario and the fourth largest in Canada. State Farm does not have shareholders, which means that they offer dividends to their customers should the company earn more than was originally projected. In 2007 they issued more than $1 billion in dividends to their car insurance policyholders including some Canadians. State Farm is the world’s largest mutual property and casualty (P&C) insurer.

History of the Company

George Mecherle founded the State Farm Insurance Company in 1922. Its original focus was insuring the vehicles of farmers in the state of Illinois but by 1942, State Farm had grown into one of the largest auto insurance providers in the United States. State Farm has since added other types of insurance to their roster including home and life insurance policies. They currently insure more than 40,000,000 automobiles in North America.

One in every five cars in the United States is currently insured through State Farm. Their current headquarters are located in Bloomington, Illinois.

The Canadian Head Office of State Farm is located at 333 First Commerce Drive in Aurora, Ontario but they have offices all across the country.

State Farm Expands to Canada

An insurance agent from Toronto named Bob Patterson would help bring State Farm to Canada in 1938. He contacted founder George Mecherle about expanding State Farm into Canada and was then invited by Mecherle to attend the Agency Convention. Within months an office was opened in Toronto allowing for the first policies to be sold in April of that year. At the start of 1954 State Farm started offering life insurance products as well as fire insurance to Canadians. According to their website, State Farm now offers financial services and insurance policies to Canadians living in Alberta, Ontario and New Brunswick. To learn more about State Farm motorcycle insurance click here.

Competition

Based on the number of policies written in North America, some of State Farm’s main competitors include GEICO, Liberty Mutual, Progressive, Allstate, Nationwide, American International Group and Zurich Financial. To see some of their Canadian competitors click here.